As a small business owner, you know it’s important to have a retirement plan for yourself, and for any employees you have or may hire. And as you consider which plan is right for your company, it’s important to think carefully about your priorities and goals.

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Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917

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As a small business owner, looking into retirement plans is a key aspect of financial planning. One option available for small businesses is the SIMPLE (Savings Incentive Match Plan for Employees) IRA. In this article, we will discuss the benefits and considerations of selecting a SIMPLE IRA through Fidelity Investments.

Benefits of a SIMPLE IRA

One of the most significant benefits of a SIMPLE IRA is that it is easy to set up and maintain. The plan does not require a formal plan document, and contributions made by employers are tax-deductible. Additionally, contributions made by employees are pre-tax, meaning that they can reduce their taxable income. The maximum contribution limit for 2021 is $13,500, with an additional catch-up contribution of $3,000 for those over the age of 50.

Another benefit is that the plan is flexible, with no requirement for the employer to contribute every year. However, if the employer does not contribute, they must notify their employees within a specific timeframe. Additionally, employees can opt-out of contributing to the plan if they choose to do so.

Considerations of selecting a SIMPLE IRA through Fidelity Investments

Fidelity Investments is a well-established financial services company that offers a range of investment solutions, including SIMPLE IRAs for small businesses. When selecting a SIMPLE IRA through Fidelity Investments, there are several considerations to keep in mind.

Firstly, Fidelity offers a broad range of investment options, including mutual funds, exchange-traded funds (ETFs), and target-date funds. It is essential to consider the investment options available and select those that align with your retirement goals and tolerance for risk.

Secondly, Fidelity charges fees for managing the SIMPLE IRA. These fees can include an annual maintenance fee, expense ratios for mutual funds, and transaction charges for buying and selling investments. It is crucial to understand the fees associated with a SIMPLE IRA through Fidelity and weigh them against the benefits of the plan.

Finally, it is essential to consider the level of support and guidance provided by Fidelity Investments. As a small business owner, you may not have extensive experience with retirement plans and investing. Fidelity can provide resources and support to help you make informed decisions and set up and maintain your SIMPLE IRA.

Conclusion

Selecting a retirement plan for your small business is a critical aspect of financial planning. The SIMPLE IRA is a flexible and easy-to-manage retirement plan option available for small businesses. When selecting a SIMPLE IRA through Fidelity Investments, it is essential to consider the investment options available, fees associated with the plan, and support and guidance provided by Fidelity. By understanding these considerations, you can select the best retirement plan option for your small business.